DTN Midday Livestock Comments 05/22 12:12
Summer Hog Futures Remain Under Pressure at Midday
Lean hog futures near the top of the noon hour are under considerable
selling pressure with the first five months in the red by triple digits, On the
other hand, the cattle complex is modestly higher for the most part, recovering
from early session weakness.
By John Harrington
The cash cattle arena remains untested at midday with neither bids or asking
prices well defined. Significant trade volume could easily be delayed until
Wednesday or Thursday. According to the noon report, the national hog base is
not tested due to rules of confidentiality. Corn futures are 3 cents plus
higher at midday, supported by further reports of dryness in Brazil as well as
parts of the American Midwest. Currently, the stock market is mixed with the
Dow off 40 points and the Nasdaq up 1.
Although most live contracts opened moderately lower, short covering has
caused issues to generally firm since midsession. At midday, prices are
modestly higher for the most part as bulls seem to be doing a decent job
holding on to yesterday's major surge. Stuck between ideas of oversold futures
and further cash vulnerability, traders seem to be treading water until one
side or the other can gather more convincing evidence. Beef cut-outs are mixed
at midday, up 0.27 (choice, $231.09) to off 0.11 (select, $207.41) with light
to moderate box movement (27 loads of choice cuts, 27 loads of select cuts, 8
loads of trimmings, 9 loads of coarse grinds).
Feeders are narrowly mixed as the trade moves into the session's final hour.
Prices range from up 5 to 22 lower. Trade volume seems very slow.
Lean hog contracts are under substantial pressure with summer issues headed
back into the lower 70s. Prices ranged from 32 to 127 points lower. Right or
wrong, there's not much confidence here that all the recent ballyhoo over a
trade truce with China means much for the long side of the market. Carcass
value is some higher at midday with lower picnics and hams overshadow by
stronger fresh cuts, ribs, and bellies. Pork cut-out: $76.42, up 0.32 CME cash
lean index for 05/18: 68.38, up 0.64 (DTN Projected lean index for 05/21:
68.69, up 0.31).
John A. Harrington can be reached at email@example.com
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